Food Security: a Hostage to Wall Street

June 26, 2015

Source

CounterPunch

In October of last year, World Food Day celebrated ‘Family Farming: Feeding the world, caring for the earth’. According to the UN Food and Agriculture Organization’s website, the family farming theme was chosen to raise the profile of family farming and smallholder farmers. The aim was to focus world attention on the significant role of family farming in eradicating hunger and poverty, providing food security and nutrition, improving livelihoods, managing natural resources, protecting the environment, and achieving sustainable development, especially in rural areas.

Family farming should indeed be celebrated because it really does feed the world. This claim is supported by a 2014 report by GRAIN, which revealed that small farms produce most of the world’s food.

Around 56% of Russia ‘s agricultural output comes from family farms which occupy less than 9% of arable land. These farms produce 90% of the country’s potatoes, 83% of its vegetables, 55% of its of milk, 39% of its meat and 22% of its cereals (Russian Federation Federal State Statistics Services figures for 2011).

In Brazil, 84% of farms are small and control 24% of the land, yet they produce: 87% of cassava, 69% of beans, 67% of goat milk, 59% of pork, 58% of cow milk, 50% of chickens, 46% of maize, 38% of coffee, 33.8% of rice and 30% of cattle.

In Cuba, with 27% of the land, small farmers produce: 98% of fruits, 95% of beans, 80% of maize, 75% of pork, 65% of vegetables, 55% of cow milk, 55% of cattle and 35% of rice (Braulio Machin et al, ANAP-Via Campesina, “Revolucion agroecologica, resumen ejectivo”).

In Ukraine, small farmers operate 16% of agricultural land, but provide 55% of agricultural output, including: 97% of potatoes, 97% of honey, 88% of vegetables, 83% of fruits and berries and 80% of milk (State Statistics Service of Ukraine. “Main agricultural characteristics of households in rural areas in 2011″).

Similar impressive figures are available for Chile, Hungary, Belarus, Romania, Kenya, El Salvador and many other countries.

The evidence shows that small peasant/family farms are the bedrock of global food production. The bad news is that they are being squeezed onto less than a quarter of the world’s farmland and such land is under threat. The world is fast losing farms and farmers through the concentration of land into the hands of rich and powerful speculators and corporations.

The report by GRAIN also revealed that small farmers are often much more productive than large corporate farms, despite the latter’s access to various expensive technologies. For example, if all of Kenya’s farms matched the output of its small farms, the nation’s agricultural productivity would double. In Central America, it would nearly triple. In Russia, it would be six fold.

Yet in many places, small farmers are being criminalised, taken to court and even made to disappear when it comes to the struggle for land. They are constantly exposed to systematic expulsion from their land by foreign corporations, some of which are fronted by fraudulent individuals who specialise in corrupt deals and practices to rake in enormous profits to the detriment of small farmers and food production.

Imagine what small farmers could achieve if they had access to more land and could work in a supportive policy environment, rather than under the siege conditions they too often face. For example, the vast majority of farms in Zimbabwe belong to smallholders and their average farm size has increased as a result of the Fast Track Land Reform Programme. Small farmers in the country now produce over 90% of diverse agricultural food crops, while they only provided 60 to 70% of the national food before land redistribution.

Throughout much of the world, however, agricultural land is being taken over by large corporations. GRAIN concludes that, in the last 50 years, 140 million hectares – well more than all the farmland in China – have been taken over for soybean, oil palm, rapeseed and sugar cane alone.

By definition, peasant agriculture prioritises food production for local and national markets as well as for farmers’ own families. Big agritech corporations take over scarce fertile land and prioritise commodities or export crops for profit and markets far away that cater for the needs of the affluent. This process impoverishes local communities and brings about food insecurity. The concentration of fertile agricultural land in fewer and fewer hands is directly related to the increasing number of people going hungry every day and is undermining global food security.

The issue of land ownership was also picked up on by another report last year. A report by the Oakland Institute stated that the first years of the 21st century will be remembered for a global land rush of nearly unprecedented scale. An estimated 500 million acres, an area eight times the size of Britain, was reported bought or leased across the developing world between 2000 and 2011, often at the expense of local food security and land rights.

A new generation of institutional investors, including hedge funds, private equity, pension funds and university endowments, is eager to capitalise on global farmland as a new and highly desirable asset class. Financial returns, not food security, are what matter. In the US, for instance, with rising interest from investors and surging land prices, giant pension funds are committing billions to buy agricultural land.

The Oakland Institute argues that the US could experience an unprecedented crisis of retiring farmers over the next 20 years, leading to ample opportunities for these actors to expand their holdings as an estimated 400 million acres changes generational hands.

The corporate consolidation of agriculture is happening as much in Iowa and California as it is in the Philippines,Mozambique and not least in Ukraine.

Imperialism and the control of agriculture

Ukraine’s small farms are delivering impressive outputs, despite being squeezed onto just 16% of arable land. But the US-backed toppling of that country’s government may change all that. Indeed, part of the reason behind destabilizing Ukraine and installing a puppet regime was for US agritech concerns like Monsanto to gain access to its agriculture sector, which is what we are now witnessing.

Current ‘aid’ packages, contingent on the plundering of the economy under the guise of ‘austerity reforms’, will have a devastating impact on Ukrainians’ standard of living and increase poverty in the country.

Reforms mandated by the EU-backed loan include agricultural deregulation that is intended to benefit agribusiness corporations. Natural resource and land policy shifts are intended to facilitate the foreign corporate takeover of enormous tracts of land. The EU Association Agreement includes a clause requiring both parties to cooperate to extend the use of biotechnology. Frederic Mousseau, Policy Director of the Oakland Institute states:

“Their (World Bank and IMF) intent is blatant: to open up foreign markets to Western corporations… The high stakes around control of Ukraine’s vast agricultural sector, the world’s third largest exporter of corn and fifth largest exporter of wheat, constitute an oft-overlooked critical factor. In recent years, foreign corporations have acquired more than 1.6 million hectares of Ukrainian land.”

Chemical-industrial agriculture and the original ‘green revolution’ has proved extremely lucrative for the oil and chemical industry and has served to maintain and promote US hegemony, not least via the uprooting of indigenous farming practices in favour of cash crop/export-oriented policies, dam building to cater for what became a highly water intensive industry, loans, indebtedness, dependency on the dollar and the corporate control of seeds, etc.

Whether through ‘free trade’ agreements, commodity market price manipulations, loan packages, the co-optation of political leaders or the hijack of strategic policy-making bodies, corporate profits are being secured and food sovereignty surrendered to the US, which has always used agriculture as a tool with which to control countries.

(The GMO issue has to be regarded within such a geopolitical framework too: it has less to do with ‘feeding the world’ and more about controlling it (see this and this)

While celebrating of the role of the family farm in feeding the world, rich speculators and powerful US agritech corporations continue to colonise agriculture and undermine the existence of small farms and global food security.

Choosing to ignore the research, however, much mainstream thinking rests on the fallacious assumption that uprooting small farms and displacing rural populations is a good thing. This assumption stems from an ethnocentric mindset that legitimises the plunder we are witnessing across the globe.

“People are perceived as ‘poor’ if they eat food they have grown rather than commercially distributed junk foods sold by global agri-business. They are seen as poor if they live in self-built housing made from ecologically well-adapted materials like bamboo and mud rather than in cinder block or cement houses. They are seen as poor if they wear garments manufactured from handmade natural fibres rather than synthetics.”

This is an ideology that fuels the myth that the ‘poor’ are poor due to their own fault and must be lifted up by the West and its corporations and billionaire ‘philanthropists’. It is the ideology that attempts to legitimise imperialism and economic colonialism, which causes economic devastation and ecological destruction in the first place. From Africa to India and beyond, the disease is being offered as the cure.